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failure to abate interest with respect to certain taxpayers.
Explanation of provision
The bill grants the Tax Court jurisdiction to
determine whether the IRS's failure to abate interest
for an eligible taxpayer was an abuse of discretion.
The Tax Court may order an abatement of interest. The
action must be brought within 180 days after the date
of mailing of the Secretary's final determination not
to abate interest. An eligible taxpayer must meet the
net worth and size requirements imposed with respect to
awards of attorney's fees. No inference is intended as
to whether under present law any court has jurisdiction
to review IRS's failure to abate interest.
Effective date
The provision applies to requests for abatement
after the date of enactment.
The Commissioner's authority to abate interest assessments
attributable to errors and delays by an officer or employee of
the IRS originated with the enactment of section 6404(e) under
the Tax Reform Act of 1986 (TRA 1986), Pub. L. 99-514, sec.
1563(a), 100 Stat. 2085, 2762. The Commissioner is authorized to
abate interest accruing with respect to deficiencies or payments
for tax years beginning after December 31, 1978. See TRA 1986,
sec. 1563(b), 100 Stat. 2762.
Respondent maintains that we lack jurisdiction under section
6404(g) to review the rejection or denial of petitioners' request
for abatement of interest for 1990 on the ground that
petitioners' original request for abatement of interest was filed
and denied prior to July 31, 1996--before section 6404(g) went
into effect. Petitioners counter that the resubmission of their
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